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Analysis BB Organic

Demand just won't pick up on the organic market

31 March 2022 - Jurphaas Lugtenburg - 1 reaction

There is little action on the market for organic potatoes, onions and carrots. The normal work is going well, but there is little extra demand. Sorters and processors have sufficient - perhaps too much - work stock and are therefore limited to the market.

The potato trade is quiet. Supermarkets normally have promotions with organic potatoes, according to an insider. Due to the general price increases, you notice that supermarkets are now choosing to set up a promotion with conventional products instead of organic. The demand for organic potatoes is therefore lower than we are used to. In addition, there is also supply of new potatoes from the Mediterranean region. The quality and quantity of the potatoes that come from there can be discussed, but buyers do use it as an argument to temper the expectations of the Dutch players. The DCA Indication Price remains the same compared to last week at €57 to €64 per 100 kilos for both floury and solid boiling potatoes.

Quality
It is also quiet on the onion market. Several growers who still have onions want to sell, but it is not easy to find an interested person at the moment. The demand for onions can still largely be met with the traders' and sorting companies' own stocks. Earlier this season, several sorters and traders got wet with onions, which turned out to be disappointing in quality. This means that buyers are now extra careful and try to keep the risk with the growers as much as possible. The DCA Indication Price is down a small step compared to last week to €45 to €50 per 100 kilos for both coarse and fine grading.

The demand for good carrots has picked up. Due to wet conditions and high transport costs, there is relatively little supply of carrots from Spain. Rinsers like to come and have a look at good batches of carrots, but in terms of price, not much is possible. There may be too much offer for that at the moment. The DCA Indication Price has remained the same at €18 to €22 per 100 kilos.

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Jurphaas Lugtenburg

He is a market specialist in grains and other agricultural commodities at DCA Market Intelligence. He also focuses on onions, potatoes, and roughage. Jurphaas also runs an arable farm in Voorne-Putten (South Holland).
Comments
1 reaction
Subscriber
Organic Jankers 1 April 2022
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/akkerbouw/ artikel/10897590/de-vraag-wil-maar-niet-attract-on-de-biomarkt]Demand just refuses to pick up on the organic market[/url]
Every week I see market reports that things are not going well on the organic markets. Nevertheless, the indicative prices are still quite cost-effective with a plus. Compared to regular products, it is still very rosy. Could it be that organic farmers have become a bit spoiled in recent years? Or that cultivation without proper crop protection still causes more losses than previously thought and that very low net kilos can be delivered?
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